Borr Drilling (BORR) Q2 2024 earnings summary

Executive summary

• Q2 2024 operating revenues reached $271.9 million, up 16% sequentially, with net income of $31.7 million, a 120% increase from Q1 2024.

• Adjusted EBITDA for Q2 was $136.4 million, up 17% from Q1, with a margin of 50.2%.

• All delivered rigs are contracted, with 73% of 2025 capacity already secured; newbuilds Vali and Var are on schedule for delivery.

• Declared a Q2 2024 dividend of $0.10 per share, maintaining a $100 million annualized payout.

• Backlog exceeded $650 million YTD, with 14 new contract commitments and strong dayrate growth.

Financial highlights

• Q2 2024 operating income was $104.5 million, up 23% from Q1.

• Free cash at quarter-end was $193.5 million, with total available liquidity of $344 million.

• Total assets were $3,181.6 million and total liabilities $2,182.4 million at quarter-end.

• Total equity increased to $999.2 million from $989.6 million sequentially.

• Net cash provided by operating activities was $9.1 million after significant interest and tax payments.

Outlook and guidance

• Full-year 2024 Adjusted EBITDA guidance remains $500–$550 million.

• 2025 expected to benefit from reduced CapEx, fewer special periodic surveys, and higher average day rates, potentially increasing cash flow by over $200 million year-over-year.

• 2025 contract coverage stands at 73% with an average dayrate of $148,000.

• Management anticipates continued tightness in the premium jack-up market, supporting strong pricing.

• Annualized dividend of $0.40 per share, with potential for further increases.